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Open Budget Index 20 10 : results and recommendations K e nan Aslanl i IBP local expert

Public Finance Monitoring Center. National Budget Group. International Budget Partnership. Open Budget Index 20 10 : results and recommendations K e nan Aslanl i IBP local expert and NBG expert October 27, 20 10 Baku, Azerbaijan. What is Open Budget Index ?.

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Open Budget Index 20 10 : results and recommendations K e nan Aslanl i IBP local expert

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  1. Public Finance Monitoring Center National Budget Group International Budget Partnership Open Budget Index 2010: results and recommendations Kenan Aslanli IBP local expert and NBG expert October 27, 2010 Baku, Azerbaijan

  2. What is Open Budget Index? • Open Budget Index (OBI) is an index which allows to measure transparency in a country’s budget process and compare it with others’ through specific survey. • The index is prepared by the International Budget Partnership organization(U.S.)

  3. OBI 2010 • Surveys consisting of 123 questions (92 of which are primary) covering 8 important budget documents are conducted by the local partner organizations selected from 94 states. • Local partner in Azerbaijan is a member of National Budget Group – Public Finance Monitoring Center. • Research had mainly covered changes throughout 2008-2009 budget years. • Initial conclusions of local expert on Azerbaijan were commented on by two anonymous reviewers and Government representative.

  4. Azerbaijan’s position • OBI 2010 – 52nd placeamong 94 countries (OBI 2008 –50th place among 85 states, OBI 2006 – 45th place among 59 countries) • Azerbaijan gets 43 points out of maximum 100 • This is 1 point higher than OBI 2010average score (42 bal) • and 17 points higher than the average score (26) for 24 countries dependent on oil and gas revenues

  5. 3 latest results on OBI

  6. States with improved positions on “OBI 2010” as compared to “OBI 2006”

  7. Reasons behind improvements in Azerbaijan’s position • Reviews on both state budget and bills on State Social Protection Fund’s (SSPF) budget were intensively placed on the website of Chamber of Accounts (http://ach.gov.az/?/az/content/168/). • State budget explanation section of the budget package was more detailed, separation between oil and non-oil sector was made in the tax incomes section. • Ministry of Finance published several interim reports on state budget implementation throughout 2008 and 2009 years

  8. Relationship between transparency and national income

  9. Azerbaijan and its neighbors from the prism of budget transparency

  10. Recommendations for Azerbaijan • “Citizens budget” and “pre-budget statement”should be elaborated and disseminated; • Content and scope of state budget bills, interim budget and executed budget reports should be further enriched; • Open budget hearings should be held in Parliament with wide public participation; • Parliament should obtain authority to supervise the budget process not only during the budget project discussion and approval stage, but also in the phase of budget implementation; • Chamber of Accounts reviews and audit reports should cover all extra-budget funds. At a current stage reviews of Chamber of Accounts on the State Oil Fund’s budget are not published and no information is provided to public on audit conducted on it.

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